Members of the Kakao branch of the Korean Chemical, Textile, Food and Allied Industries Workers Union hold a rally titled “Resolution Meeting for Victory in the 2026 Wage and Collective Bargaining Negotiations” at Pangyo Station Plaza in Seongnam, Gyeonggi, on May 20. [YONHAP]
Union demands for profit-sharing bonuses are spreading rapidly following Samsung Electronics' agreement with its labor union on performance-based compensation. Concerns that the semiconductor industry’s model of linking bonuses to a fixed percentage of profits could spread across the broader economy are becoming a reality.
Unions representing five Kakao affiliates have announced a partial strike for June 10, with performance bonuses among the key issues. They are reportedly demanding compensation equivalent to 13 to 14 percent of operating profit. The Hyundai Motor union is seeking bonuses equal to 30 percent of net profit, while unions at Kia, HD Hyundai Heavy Industries and LG U+ are demanding 30 percent of operating profit.
These companies are leaders in the IT, automotive, shipbuilding and telecommunications sectors. If employers continue to accept fixed-percentage profit-sharing bonuses under strike pressure, as Samsung Electronics did, such arrangements could become standard practice across industries.
